Vehicle Dashboard Technology

Smartphones are now a part of everyday life.  Need directions to a restaurant? Google Maps is just a click or spoken word away on your phone.  With the rapid pace of development of apps and phones, the new features being offered are changing every day.  Many people get tired of their shiny, new smartphone in less than three years, and cell phone providers are now offering replacement phones after two or even one year to keep customers happy and current.

On the other hand, people tend to replace their car every five to seven years.  Those used cars then stay in service for another five to ten years after that.  Now think about the development cycle of a new car which takes over a year; whatever system existed to integrate the vehicle with the smartphone when it rolled off the assembly line has to survive three or four new generations of smartphones over its life cycle, and from phone vendors that may not even have existed when the car was initially developed.

Coming up with a system that allows consumers to use certain aspects of their phones with their cars is a significant challenge, but one that consumers expect in today’s cars.  Different manufacturers have developed their own proprietary approaches to this problem, and there are industry working groups developing specifications for interfaces between cars, phones, mp3 players and other electronic devices.

The auto industry is still in its early stages of trying to figure out how to deal with this new compatibility people expect from their everyday electronic devices.  Likely in ten or even five years when we look back, many of the approaches that exist today will seem antiquated, in the same way as people regard diskmen or the Edsel. Until then, I look forward to seeing what emerges!

For the time being, many systems allow for updates to be made as easily as getting your oil changed.  While the systems of today may not be the systems of tomorrow, at least an easily upgradeable system will allow owners to match the latest current technology, whatever that may look like.

- David

Virtual Showrooms Become Reality

Normally Dave is more geared towards dealership news and I’m more focused on posting financial information that affects the auto industry, but this week our Marketing Manager Jamie Rubenovitch shared some very interesting information with me on a new type of dealership that I would like to discuss today. We’re all used to going online to check out a new car we’re interested in buying and then heading into the dealership next to interact with the salespeople and get the lowdown on our potential new car. This may be a thing of the past as Audi came out with their first virtual showroom in 2012.

My first thought was “what is a virtual showroom?” Well it’s apparently a lot like what we see in the movies – floor to ceiling digital and 3D screens showing customizable vehicle exteriors, interiors, engines and colours. Now that Audi is on to their second of a proposed 20 virtual dealerships (first was London and most recently Beijing), other auto brands/manufacturers are trying to keep up.

BMW is working on bringing “geniuses” to the dealership. Similar to how Apple has a genius bar of technologically savvy people who are available to explain features and answer questions, BMW will have auto savvy, iPad wielding staff available to answer any level of question.

But what are the benefits of a virtual dealership? They enable dealers to have a presence in smaller urban spaces they normally couldn’t have fit in before. If they don’t need sprawling room for 5-15 cars, they can set up shop in a popular mall and reach more people.

Consumers also benefit from being able to see the ins and out of a vehicle without having to drive to the suburbs and climb underneath the hood. On the flip side, could you buy a car without ever actually driving it? I guess that’s what the regular dealerships are for, and they’re not going away anytime soon.

So far virtual dealerships don’t exist in North America, but it will be interesting so see the degree of consumer acceptance. Dealers have significant investments in their buildings and showrooms. Cars still need to be serviced, so that part of the business likely won’t change, however, what happens to the showroom? I believe consumers still want to “kick the tires” and experience first hand the automobile they may purchase. No matter how sophisticated the graphics and websites are, there will be initial reluctance to buy sight unseen. Automobile purchases represent significant investments to most consumers; it’s definitely not like purchasing a cell phone or small electronic equipment. People want to drive the car and see first hand what it has to offer.

So “hats off” to Audi and BMW for their respective efforts to stay competitive and ahead of the curve. However, this accountant feels that we are still years away from automobile dealers shutting down their showrooms and displaying their cars only on digital screens. Mind you, if consumers are offered virtual rides in the future that realistically represent rider experience, who knows what may happen. 

- Jeff

The first scratch is the hardest

In late 2004 I purchased my first new car, a 2004 Honda Civic SI sedan. My girlfriend was living in Montreal and I was in Toronto. She came to Toronto shortly after I picked up the car and I drove up to her parents’ house to show her my prized possession. On the way I decided to stop at an automatic car wash to make sure the car looked its best. I paid my money and drove into the bay. I will spare you the gory details as I am still sensitive about the incident, but let’s just say I paid for a touchless car wash and in the end I did not receive what I paid for. Even though the owner took responsibility, I still had to choose how I would get the damage fixed. Should I go to an independent body shop or take it back to the dealer?

I am lucky to have family in the business so I can get honest advice whenever I need it, but what is an average consumer to do? When I went through driving school they did not teach us what to do if an accident occurs. What documentation do I need? Where should I get the car towed to? How do I order a tow truck? Should I call the police? These are serious questions that many of us do not have the answers to.

The Toronto Automotive Dealers Association has addressed this problem with Renewit. Renewit can be offered to customers as a service they can use in case of a collision and it includes a mobile app that provides collision reporting templates, safety tips and traffic information. Bob Redinger, Co-Committee Chair Person at Renewit Inc., explains that if a customer is in an accident, they can contact Renewit and Renewit will assist the customer in bringing the car to the dealership of their choice for repair. Renewit can organize a tow truck to pick up the car, contact the dealer to let them know the car is coming in for repair and it can also help put the customer in touch with the right sources to get answers about insurance claims and repair coverage. In addition, the application allows dealers to contact their customers to inform them of specials, etc. This program is completely free to customers.

For dealers, the program is seen as a customer retention tool that provides customers with peace of mind that if they are ever in an accident they will have support from a knowledgeable and trustworthy source. Dealerships pay a monthly fee to be listed as a Renewit-approved dealer and the service can be offered to customers when they are purchasing a new or used vehicle or servicing a car through the dealership. In order for the dealership to get the full benefits of this program, employees should assist customers in installing the mobile application and setting up their personal profile.

It is a challenge to gain a competitive advantage in any industry, and this program allows dealerships to offer ongoing service to customers as well as providing an opportunity to get referrals through being listed as a preferred Renewit dealership.

Go to www.renewitnow.com for more information.

-- Bryan Redinger